Are Credit card companes proactive with fraud transactions?

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gemini
 
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Are Credit card companes proactive with fraud transactions?

Postby gemini » Sat May 14, 2011 9:55 am

These days does normally almost every credit card company proactively offer the service of not charging the customer for the fraud transactions? And in fact does it proactively inform the customer that fraudulent transactions were carried out through your account?

Or is it required that the customer have to claim for fraud and only then the company would not charge him or her for such transactions?

I know in fact a few companies do call the customer after a few days informing that some past transactions were probable to be fraud transactions and ask the customer for verification regarding them.


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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon May 16, 2011 11:02 pm

Generally the customer has to report fraud. But if suspicious transactions show up and they set off the bank's fraud detection systems, then customer service will call the customer and ask "Are these transactions yours?" Not sure if that's what you mean by being proactive though.
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gemini
 
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Postby gemini » Tue May 17, 2011 2:36 am

Thanks

By proactive what I mean is that when the credit card companies do detect that a transaction is likely to be a fraud one, they do call the customer on their own to verify if it is a genuine transaction or not. Additionally, I would like to know about the degree of proactiveness as follows.

Let us say that there are 5 fraud transactions which are not detected to be fraud, but were carried out in a different location from that where the card-holder usually does transactions. And hence the card-holder is not aware of these transactions.

Now the next transaction ( 6th one ) is detected to be a fraud one by fraud detection system. And the company calls up the card-holder and the card-holder confirms that this is indeed a fraud transaction.

Now by being proactive what I mean is that whether the company would also enquire about the previous 5 fraud ( though undetected transactions ) and on their own not charge the customer for those transactions, or whether they would refund later if at all the customer at the time of bill payment does claim for fraud for these 5 transactions as well.

Sorry if there was any confusion.

Also, I am under the impression that there would be fraud transactions which at the time of transacting are not detected to be fraud in real-time, but might be detected fraud at a later stage after few days. In such a case, do the companies usually call up the customer later and enquire about such past transactions ? Please correct me if I am wrong.

I am working on a project and hence would like to know about this. Thanks.

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Postby naomibatac » Fri Sep 30, 2011 8:11 pm

It is my opinion that credit card companies are proactive concerning fraud transactions. One credit card company provides Fraud Protection Guarantee on their credit cards. Accordingly, they will not hold the credit card holder responsible for any charges brought about by fraudulent transactions. They implement secure encryption technology on their cards to protect user’s information confidential.
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Postby DavidNY » Sat Oct 01, 2011 10:38 am

Creditors are sometimes a little too proactive.

Once I tried using one of my cards and found it was useless. I called the bank which asked me if I made a purchase at a well known internet retailer. I said yes, and my account was reinstated.

I was told that the retailer had a high amount of credit card fraud so my card was cut off as soon as I made the purchase. I asked why they didn't contact me about it and they said they didn't know.

This is one good reason to diversify credit suppliers.

gemini wrote:Let us say that there are 5 fraud transactions which are not detected to be fraud, but were carried out in a different location from that where the card-holder usually does transactions. And hence the card-holder is not aware of these transactions.

Now the next transaction ( 6th one ) is detected to be a fraud one by fraud detection system. And the company calls up the card-holder and the card-holder confirms that this is indeed a fraud transaction.

Now by being proactive what I mean is that whether the company would also enquire about the previous 5 fraud ( though undetected transactions ) and on their own not charge the customer for those transactions, or whether they would refund later if at all the customer at the time of bill payment does claim for fraud for these 5 transactions as well.


In this case, all charges would be refunded when the cardholder advises the creditor that the five earlier charges were fraudulent. There is a limit on the time the cardholder has to advise their creditor but I haven't heard of a situation where so much time elapsed that the cardholder was asked to pay for any fraudulent charges.



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